Chapter 18.II, Problem 8RE

### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Chapter
Section

### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# Calculate the assessed value and the property tax due on the following properties. F a i r   M a r k e t   V a l u e A s s e s s m e n t   R a t e A s s e s s e d   V a l u e P r o p e r t y   T a x   R a t e P r o p e r t y   T a x   D u e $54 , 600 30 _ _ _ _ _ _ 45.5 mills _ _ _ _ _ _ To determine To calculate: The assessed value and property tax due, if the fair market value is$54,600, assessment rate is 30% and property tax rate is 45.5 mills.

Explanation

Given Information:

The fair market value is $54,600, assessment rate is 30% and property tax rate is 45.5 mills. Formula used: Assessed value is the value of property that is used for tax purposes, and is generally a percentage of fair market value. fair market value×assessment rate=assessed value Property tax can by computed by, property tax=assessed value of property×tax rate Steps to calculate property tax when the tax is expressed in mills, Step 1. Multiply the tax rate in mills by 0.001 to calculate the tax rate in decimal form. Tax rate in decimal form=Tax rate in mills×.001 Step 2. Multiply the assessed value by tax rate in decimal form to calculate the property tax, Property tax=Assessed value×Tax rate in decimal form Calculation: Consider the provided data, The fair market value is$54,600, a

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